Vol. 1069 No. 3
85. Deputy Louise O'Reilly asked the Minister for Social Protection if he is aware of the groups excluded from the jobseeker’s pay-related benefit, in particular the seasonal, casual, short-time or part-time workers such as school caretakers and secretaries who could benefit considerably from receiving the jobseeker’s pay-related benefit in lieu of the jobseeker’s benefit; and if he will make a statement on the matter. [33101/25]
Maidin mhaith do gach duine. As is often the case, my question is very simple and straightforward. It gives the Minister the chance to explain why a category of workers, particularly those in seasonal, casual, short-term or part-time employment, such as school caretakers and secretaries but not exclusively, are excluded from the Government’s new pay-related jobseeker's benefit.
Maidin mhaith ar ais duit, a Theachta.
The new jobseeker's pay-related benefit was introduced at the end of March. This new social insurance-based income support has replaced the jobseeker's benefit scheme for those who have become fully unemployed since the commencement of the scheme on 31 March. On 7 June 2025, some 11,900 jobseeker's pay-related benefit claims had been awarded under the new scheme.
The origin of this payment is the experience during the Covid period, when many workers lost their incomes suddenly and without warning. The PUP, which was pay-related, helped to cushion the income shock.
The jobseeker's pay-related benefit extends the same principle to people who lose their income unexpectedly. It links the rate of payment to a person's previous earnings to provide a financial cushion when a person loses their employment entirely. It allows them to adjust to a period of uncertainty associated with unemployment. The scheme aims to support a person during this initial period while they seek alternative employment and adjust their outgoings.
The legislation underpinning the scheme specifically provides that specific categories of atypical workers are excluded from the jobseeker's pay-related benefit. These exclusions apply to those referred to by the Deputy, who often work on a part-time, casual, short-time or seasonal basis. The conditions for the jobseeker’s pay-related benefit scheme are not designed to provide in-work support on a recurring and intermittent basis.
Seasonal workers and those whose employment patterns align with the academic year have a predictable or ongoing pattern of work and can plan accordingly. However, within the Department we seek to be proactive. We have already communicated with more than 8,000 people who we know have the work patterns in question to ensure no delay in going on to benefits as soon as the school year ends. At this point, I do not plan to include them in the jobseeker’s pay-related benefit scheme.
I will hold the Minister to that. I will be back here in September to check against delivery, as the Government often states regarding its statements.
The Minister has not advanced any satisfactory justification for why the group has been excluded. He states they can predict they are going to be unemployed, but even if you know you are going to be broke or are surprised by being broke in the middle of a cost-of-living crisis, you are still broke.
At the committee meeting last week, the Minister spoke at length about his commitment to make some efforts with regard to child poverty, which I do not doubt for a moment, but what about the children of school secretaries, school caretakers, seasonal workers and those on very low incomes? Just because they know they are going to be struggling does not mean they will be struggling any less. Will the Minister reconsider his decision and examine the group I have mentioned, in particular, perhaps in the context of the cost-of-living crisis or commitments on child poverty? The Minister should do whatever it takes and consider again the groups who are excluded.
I am always open to considering the Deputy's suggestions. We will be reviewing the jobseeker’s pay-related benefit after a year of operation. This is the first time in more than 40 years we have had such a benefit. In connection with other questions that have arisen, it will provide the foundation for other potential pay-related benefits.
If there are relevant cases, the Deputy should bring them to my attention. We are proactively engaging with those we know have a particular pattern of employment at this time of the year, particularly in the academic sector. More than 8,000 people have been contacted in the past several weeks. If there are any cases, I would like to hear about them before September so we do not have any delays in people getting their income payments.
As of now, I have no plans to review the scheme but I will certainly be happy to have a discussion with the Deputy in the context of the overall review, which will take place after a year.
I ask the Minister to charge the people doing the review with the responsibility of looking at seasonal workers. To be frank, that is possibly the least that the Minister could do but I ask that he do that. There should be some engagement about the people who are excluded with the trade union, Fórsa, because it represents the bulk of the secretaries and caretakers. It is not just them but all seasonal workers. There is a more favourable rate of jobseeker's benefit available and a group of low-income workers is excluded from it. Does the Minister see where I am going with this? These are not people who are on big money. When people are on jobseeker's, they are broke. It does not matter if they have known for a couple of weeks that they are going to be on jobseeker's. If there is a more favourable rate available, I am sure the Minister can imagine how those excluded from that rate feel for the weeks of the year when they do not get any payment. These are the only people in the school who will not be paid over the summer. I am not saying they are treated as second-class citizens. I am saying they have possibly every right to feel like they are, then they look at the jobseeker's benefit and see the same treatment applied. I ask that the Minister look at this group in particular.
Absolutely. I am always open to any engagement with unions on this. This system was designed for workers who are going to be re-employed relatively quickly. Hopefully in the coming weeks, we will get the first signal of that, because the first cohort of people will be coming to the end of the top payment of 13 weeks. That payment declines as they are no longer employed so to do a full comparison between jobseeker's pay-related benefit and other things will take some time in terms of people's experience and the length of time people are on it. It is designed to assist people as they seek other jobs. The group the Deputy mentioned will be going back to other jobs in September. What I want to do in the immediate term is make sure that their transition is as seamless as possible. I am more than happy to engage with the Deputy, the House and any unions about how we can make that transition much easier. We will also engage with the Deputy in the context of the overall review, which will be in the middle of next year after about a year of jobseeker's pay-related benefit.
86. Deputy Mark Wall asked the Minister for Social Protection to outline his plans for a pay-related carer’s benefit payment; and if he will make a statement on the matter. [33117/25]
I would appreciate if the Minister could update the House on his and his Department's plans for pay-related carer's benefit payment, given the importance of that particular payment and the need for a pay-related part of it for so many people.
Carer's benefit is, as the Deputy knows, a payment available to insured people who may need to leave work or reduce their hours to care for a person or people in need of full-time care and attention. It is financed from the Social Insurance Fund. Since January, the scheme has been extended to the self-employed. Recipients of carer's benefit were among the 138,000 carers who received a carer's support grant of €2,000 on 5 June. The Government fully acknowledges the incredible role that family carers play and we are fully committed to supporting carers. This is recognised in the programme for Government, which includes a number of commitments regarding carers, including the commitment to examine the introduction of pay-related carer's benefit for individuals who have to give up work suddenly in order to provide full-time care to a loved one.
The new jobseeker's pay-related benefit started in March. Developed from the experience during Covid, the scheme ensures that workers who are made unemployed receive enhanced benefits linked to their previous earnings. It is a relatively new payment but, as I said in response to the previous question, we intend to learn from our experience operating it. That experience and learning will help to inform future decisions regarding pay-related schemes, including, potentially, carer's benefit. In addition, we will be moving towards the implementation of the programme for Government commitment to abolish the carer's allowance means test. In this context, further consideration will be given to the potential knock-on effects for the carer's benefit scheme generally. We are fully committed to supporting family carers and I will always keep the range of supports provided by my Department under review. I expect to launch a consultation later this year on the further extension of pay-related schemes, including parent's benefit, and will also seek the views of Deputies and stakeholders about pay-related carer's benefit.
It goes without saying that carers in this country save the State €20 billion. We know we have more than 500,000 carers in the State. One in nine of those people are reported to be trying to juggle a job and their caring responsibilities at the same time. I appreciate what the Minister said. Obviously the pay-related jobseeker's benefit is something new, as he said. What we are looking for and what is promised in the programme for Government is to protect the most vulnerable, who are those who have, in most cases, to give up work suddenly to look after a loved one. That is what we and so many people in the caring community are asking for, that the cliff edge is less severe than it could be by having a pay-related carer's benefit. I appreciate the Minister's reply, but I hope the carers and the huge role they play for the State will form a huge part of that review and consultation that the Minister is launching later in the year.
Absolutely. I think in a couple of weeks the Deputy will see a full indication of this Government's ongoing commitment to carers. As he knows, the carer's benefit is subject to an earnings limit of €450 per week after tax. As part of budget 2025, the income limit will increase to €625 with effect from July, which will allow far more carers to avail of carer's benefit. We also extended the flexibility regarding children who are in hospital or newborns who are kept in hospital. The carer's benefit payment has increased by €41 a week over the past four years. We will continue to support carers by increasing the number eligible for it and by ensuring that the weekly payment is as high as possible. I also want to ensure that those who have to make decisions to leave work, and in particular, considering the essence of the scheme, those who have a sudden change in income, are supported as well.
I think we can both agree that the sudden change or cliff edge, as I call it, causes so many problems for so many people who have to leave work, and unfortunately their income drops accordingly. That is the issue that we are trying to raise with the Minister today. In fairness, he has come back to say that he recognises there is an issue and that he will review this as part of the consultation later in the year. Obviously that consultation relates to carers. I know we have already debated the carer's needs and the Minister has mentioned the means test as well. We will not go back over that today. Regarding pay-related carer's benefit, I will offer some support to the Minister in the form of the number of queries we have got in our office. It is important that we all play our part in that review and consultation. Various carers' associations will also want to be part of that consultation because that cliff edge and sudden drop in income, because you have to stay at home and because you cannot earn that income anymore, needs to be addressed urgently. I look forward to debating that and indeed helping the Minister with that consultation later in the year.
I have met the carers' forum in the Department. I will continue to use that forum with carers' groups for consultation. I am sure the joint committee will have good input on that, as well as Deputies in this House. We have made changes this year. As I said, carer's benefit was extended to the self-employed as part of budget 2025. At the end of April, we had 139 applications from self-employed people for carer's benefit. We paid the carer's support grant, which is the highest in its history, of €2,000 on 5 June. We will expand eligibility from 2 July. We are very much investing in carers. We have more to do and will continue to do that. I look forward to working with Deputies on that.
87. Deputy Louise O'Reilly asked the Minister for Social Protection if he is aware of the considerable financial burden the cost of school tablets imposes on parents; if he will consider expanding the back-to-school payment or introducing a device allowance for children attending schools that require tablets; and if he will make a statement on the matter. [33102/25]
The issue of having to purchase devices is coming into my office a lot. It is probably coming into everyone's office at this stage. While obviously there is a benefit to parents of not having to buy schoolbooks, that benefit is entirely undermined if they then have to spend the equivalent amount or more. I welcome the Minister's recent announcement of the extension of the back-to-school clothing and footwear allowance to foster families, but they will be means tested for it, which will exclude a lot. I know I am tacking that onto the end of my question but I am sure the Minister will not mind and that the Leas-Cheann Comhairle will indulge me.
I thank the Deputy. I do not mind at all. The back-to-school clothing and footwear allowance scheme provides a once-off annual payment to eligible families to assist with the cost of clothing and footwear when children start or start back at school each autumn.
Last year, the back-to-school clothing and footwear allowance payments totalled €57.04 million. This was paid to more than 149,500 families in respect of 264,400 qualified children. The majority of families are awarded the allowance automatically. A notification of the awards is issued to these families. In 2025, 114,000 families have been automatically approved for the back-to-school clothing and footwear allowance, in respect of 197,000 qualified children. Payments will begin to be made in the week commencing 14 July. I encourage anybody who has not heard or got a notification to go to MyWelfare.ie and to register their interest or concern.
Matters relating to devices in schools is the responsibility of my colleague, the Minister for Education and Youth, Deputy McEntee. She is keenly aware of the challenges faced by parents and educators relating to the costs of digital technology, including tablets. Her Department is continuing to work to help support schools and families with these costs. The Minister recently announced a €35 million investment in schools for ICT infrastructure. This funding is issued directly to schools, as schools are best placed to identify the requirements of their own student cohort to meet those requirements in accordance with their digital learning planning. This can include the purchase of ICT devices, such as tablets or laptops and the implementation of loan schemes for same if needed. At this time, I have no plans to change the back-to-school clothing and footwear allowance to include a specific device payment.
I welcome the Deputy's expression of welcome for the expansion of the back-to-school clothing and footwear allowance to foster families. It is means tested. However, the means test will exclude the weekly payment of €400 that is paid as the foster allowance. We are currently reviewing every means test. Means tests are important to ensure that supports go to those most in need of them income-wise. I wish to re-emphasise that the back-to-school clothing and footwear allowance means test will exclude the €400 or €420 per week payment to foster families.
I understand the need to get the money to where it needs to be. With the greatest of respect, the Minister does not need to do a review to understand that kids who are in foster care are among the most likely to be experiencing deprivation. They are effectively in the care of the State. I urge the Minister to look at that again because the means test is unfair. We are not talking in the context of a large budget. We are not talking about a large amount of money. I understand that big budgets are made up of many small asks.
In the last couple of days, I read in the newspaper that some of the Minister's colleagues are saying that the cost-of-living crisis is over. Good luck with that project as they go out to their clinics because it is not. Families are being put to the pin of their collar. I know of organisations and companies that are offering buy now and pay later terms. That is families having to get themselves into debt just so their kids can go to school. This goes completely against the principle of the back-to-school allowance. It has now been superseded by the need to purchase devices. I urge the Minister to have a discussion with the Minister, Deputy McEntee, but the money will come from the Minister, Deputy Calleary's Department. It will be the extent to which that the Minister can champion this that it will be done.
On the back-to-school clothing and footwear allowance for foster families, it was an anomaly that foster children could not qualify for this scheme. This was even to the extent that there could be foster children and other children within a family. Some of the children would have qualified and the foster children would not. I have corrected that anomaly. There are means tests, however, across all our schemes. I do not want to correct an anomaly by creating another. I understand the extraordinary role played by foster parents. I look forward to working to continue to enhance conditions.
In the context of that big budgets are made up of small asks, I will use that a lot if the Deputy does not mind. I will engage with the Minister, Deputy McEntee. She is conscious of this. We have had discussions. As the Deputy said, the cost-of-living crisis is also affecting clothing and footwear. That is a massive expense on families at this time of year, particularly as children go back to school and if schools are demanding particular kinds of uniforms. I wish to make sure the money, which is relatively small, is directed at that cohort at this time.
We have made huge investment in school books. My Department has made huge investment in school meals. We are focused on trying to improve the experience of children in education, but my Department cannot continue being the Department that everybody comes to looking for assistance.
88. Deputy Liam Quaide asked the Minister for Social Protection if his attention has been drawn to a report on child poverty (details supplied); his plans to address the rising number of children living in consistent poverty; and if he will make a statement on the matter. [33108/25]
I would like to ask the Minister for his response to the recently published child poverty monitor report and his plans to address the rising number of children living in consistent poverty. The findings of that report make for very grim reading and should focus the minds of the Government on a major change in policymaking.
The Government welcomes the publication of the fourth child poverty monitor. I acknowledge and thank the Children's Rights Alliance and its constituent members for the work they have put into this. The child poverty monitor draws on the survey on income and living conditions, SILC, 2024, which was published by the Central Statistics Office, CSO, in March 2025. It is based on a survey conducted throughout 2024 asking people about their income and consumption in 2023 and 2024. It illustrates that the consistent poverty rate for children increased from 4.8% in SILC 2023 to 8.5% in SILC 2024. While the related figure for child deprivation did fall marginally in SILC 2024, it is disappointing. I am concerned that we continue to see an increase in consistent poverty for children. We are currently working through the report. However, it is important to note that the survey data does not fully factor in the impact of budgets 2024 and 2025, both of which included the largest ever social welfare packages, including many measures that can be expected when they are fully reflected in the data to reduce child poverty.
The child poverty monitor highlights the progress that has been made in recent years, including increases in targeted family income supports, as well as important new measures, such as hot school meals, the holiday hunger pilot, free school books and the commencement of Equal Start. The solutions to child poverty identified in the report align closely with the priorities identified by the Government in our first cross-government programme plan - Child Poverty and Child Well-being 2023-2025. This includes a focus on targeted income supports, early learning and care, the cost of education, family homelessness, integrated services and participation. Due to this report and many others, including reports of the views of children themselves, we know that the policies are working. We are ready to take targeted, decisive and informed action in the context of the forthcoming budget in this space, not just in the Department of Social Protection, but across government. We are focused on reducing child poverty in measures that will be part of budget 2026.
The stark and ever-worsening reality of child poverty is laid bare in the child poverty monitor and wider research. The Children's Rights Alliance has issued a stark warning that unless ambitious action is taken by the Government it will take Ireland four to five generations to break the cycle of poverty. The report found that the number of children living in consistent poverty rose by a staggering by 45,107 in 2024 to almost 103,000 children. This reflects immense damage being inflicted on young lives with the potential to cause harm into adulthood. We know that adversity chain reacts across the lifespan. This is not evitable. It is not a natural disaster. It has come about through political decision-making. It is a scandalous indictment of successive Governments that are State coppers are overflowing, but at the same time we see child poverty soaring.
I wish to reiterate that we are disappointed by the latest child poverty figures. However, it is important to recognise that in 2023, when the SILC income data was collected, the Government had not yet brought in free school meals for all primary schools, which we have now done, or free school books across second level, which we have now done. Those supports will make a difference to children in poverty. It will be reflected in future figures. Similarly, the significant increases in social welfare contained in budget 2024 and the associated cost-of-living measures, which were worth more than €2.3 billion, were not included in the SILC income statistics and neither was the €2.6 billion budget 2025 social welfare package. However, we do not take that for granted.
I can assure the Deputy that our determination to reduce child poverty is reflected in the programme for Government commitments and in the work of the Child Poverty and Well-being Programme Office. Since 2023, this is based in the Department of the Taoiseach. It will take time to see the impact of the work of that unit on the data. The Economic and Social Research Institute, ESRI, independently shows that the system of social transfer has been effective in reducing child poverty.
Current child-related cash and in-kind benefits have lifted an estimated 157,000 children out of income poverty and 94,000 out of consistent poverty.
I acknowledge the supports the Minister mentioned, but we have not seen sufficiently ambitious targeted measures and strategic investment in recent budgets designed to break the cycle of intergenerational poverty. It is critical, therefore, that there is a focus in budget 2026 on breaking that cycle.
The cumulative impact of continued rising costs of living has created a landslide effect for low-income families such that the very basics, such as nutritious food and keeping their homes warm, become increasingly difficult to achieve. We need to see a major scaling up of the Equal Start programme and an extension of DEIS Plus to address disadvantage at the early stage. We must also benchmark our social protection system to the cost of a minimum essential standard of living to ensure that everyone has enough to sustain a decent quality of life. All future budgets must be poverty-proofed and set against the targets of the anti-poverty strategy. At a very basic level, we need a radical change in housing policy. One in four children lives in conditions of overcrowding and more than 4,700 children living in emergency accommodation. This will require ideological change from the Minister and the Government. Not embracing that change will cause untold damage.
It will require continuous targeted investment. We will be making choices in the context of budget 2026 regarding targeted supports for children and families. I look forward to the Deputy's support for those. In the context of the programme for Government, we will continue to retain the child poverty and well-being office in the Department of the Taoiseach. The Taoiseach made it very clear to me when I was appointed that child poverty is to be a major focus. We will continue to increase core welfare payments. We will be looking at increasing the child support payment as one of the targeted measures and looking at various pay-related benefits for parents that we discussed earlier. The programme for Government has a commitment to expand the fuel allowance to the working family payment, which will address the energy issues to which the Deputy referred. We have a focus on this within the programme for Government, which will be delivered upon. We are finalising our new child poverty target and the measures that will go with that in order to ensure that we achieve it. It will be ambitious, absolutely, but it has to be ambitious. We have to ensure that no child is left behind. I am certainly determined to ensure that will happen in the context of my Department.
89. Deputy Brian Stanley asked the Minister for Social Protection whether his Department will conduct a review of the delays relating to the awarding of disability and carer’s allowance, particularly in light of delays of up to five months that have occurred in County Laois; and if he will make a statement on the matter. [33295/25]
My question relates to the delays around reviews of decisions relating to disability and carer's allowance. Currently, people are waiting a long time. This matter needs to be addressed. I hope the Department is going to take action on it.
My Department is committed to providing quality service to all, ensuring that applications are processed and that decisions on entitlement are made in a timely manner. We absolutely understand the pressures people face, and we ensure that claims are processed quickly and efficiently.
There are almost 170,000 people in receipt of disability allowance, DA, and more than 100,000 people in receipt of carer's allowance. The number of people in receipt of DA has increased by almost 50%. The number of people in receipt of carers allowance has increased by 67% over the past ten years. The processing times for individual claims may vary in accordance with the relative complexity of each application, particularly in terms of the main qualifying criteria, each individual's circumstances and the information that is provided in support of the claim.
When determining suitability for disability allowance, evidence needs to be examined in respect of the medical condition involved, the extent to which it restricts a person from taking up employment, their means and habitual residency. Similarly, when examining suitability for carer's allowance, caring needs are also examined. To assist the Department to make timely and fair decisions, we need to ensure we have completed forms and that supporting documentation is attached. Claims with incomplete information take longer to process.
In recent years, my Department has introduced a wide range of initiatives aimed at streamlining the processing of claims using modern technology. Operational processes, procedures and the organisation of work are continually reviewed to ensure that processing capability is maximised. I am pleased to inform Deputy Stanley that we are currently meeting and exceeding our processing target for the disability allowance scheme, which aims to award 75% of applications within ten weeks. For carer's allowance, we aim to award 80% of applications within ten weeks. The average processing time for both schemes is six weeks. I will certainly engage with the Deputy with regard to any specific case that falls outside of those periods. We are continuously trying to reduce those processing times.
The reason I raise this is because people find themselves out of work through no fault of their own because of a disability or have to give up work to care for a loved one and may have to put in a claim for carer's allowance. These are genuine cases. I understand that it is complex. I understand that there are a number of different aspects in terms of judging whether people are eligible or not. The Oireachtas helpline is of assistance, but it is not a silver bullet. The experience we have had is that some applications take four and five months to process, which can cause serious problems. Even in straightforward cases, there may be a missing document that is then supplied. If there is an appeal, it can take up to 12 months. That is our experience.
The Minister asked if I have an individual case. I want to go back and check where those cases are at. If there is a particular case, I will bring it to his attention. The Minister read out a reply prepared by the Department. I am not saying that the officials are giving him false information, but the experience we have been having does not match what he read out.
I thank the Deputy for his feedback. We discussed this matter in the context of preparing a reply to his question. We are putting a huge number of resources into dealing with appeals. We have 20 extra staff who have been assigned to the appeals unit. They have been trained up and are working. The number of domiciliary care appeals decreased from approximately 1,200 in the middle of May to just over 600 by the middle of this month. The majority of those 600 cases relate to appeals made in April, May and this month.
I will be focusing the extra resources in the appeals unit on carers in order to ensure that any backlogs are addressed. I do not have a figure at the moment. However, no claim should take up to a year to assess. If there are delays of that nature, the Department and I want to hear about them. We have set a time of six weeks with regard to carers and disability in the context of the turnaround of applications. It is important that we get the fullest possible information from people in support of their claims. The more information we have, the quicker we will make decisions.
If they could be done within a six-week period, that would certainly be very good. I welcome the fact that there is a target in that regard. In the absence of targets, nothing is achieved. Things move when there are targets. The Minister is correct about people supplying more information. Often, those who make claims are not sure what is being sought as a result of the language the Department uses. It has been simplified in recent years, and that is welcome. It is important that we try to achieve the target.
As already stated, people find themselves out of work through no fault of their own because of a disability or they have to give up their jobs. The Minister and I often come across cases in our constituency of people having to give up work to care for loved ones. It is really important that we try to support people financially. We must remember that while they are waiting, they have nowhere else to go. They can go to the community welfare officer, maybe, but there are very strong rules in that regard. It can be difficult and can take time. It is really important that we try to iron out any difficulties with this. The delivery part of the appeals process needs to be looked at.
In recent weeks, I took the time to try to visit all the Department's regional offices in which many of these claims are dealt with, including our head office in Dublin. I met all the staff, and they are doing absolutely fantastic work. We have nearly 7,000 members of staff across the Department of Social Protection, many of whom are managing these claims and turning them around as quickly as possible. Where there are information gaps, we try to address them as quickly as possible. We are investing significantly in technology to try to assist that as well. As the Deputy said, we have tried to change the language and make it more inclusive, but if there are places where that is not happening, we will address that. The Department and our staff are very committed to doing that.
As stated, we have appointed 20 extra appeals officers. They come with experience of managing and processing claims. I visited the social welfare appeals office last week to meet these officers and see their work at first hand. They are all very focused and are working hard to reduce any backlogs.
The domiciliary care allowance is a good example of where a focused effort has reduced the backlog by almost half in just over a month.
90. Deputy Catherine Ardagh asked the Minister for Social Protection for an update on plans to abolish the means test for the carer’s allowance, given the strong support for this in the programme for Government; to confirm if it will be included in budget 2026; and if he will make a statement on the matter. [32829/25]
I know the ground on carer’s allowance has been covered a lot, but the programme for Government contains a commitment to the abolition of the means test for carer's allowance during the Government's term. Will the Minister provide an update on where this now stands, on the work has been done on the costings or preparations and on whether we can expect progress or a first step in budget 2026?
The carer's allowance is the main scheme by means of which my Department provides income supports to carers in every community. As the Deputy will be aware, more than 100,000 people are in receipt of carer's allowance. Expenditure on the scheme in the current year is estimated to be more than €1.24 billion. Carer’s allowance provides an income support to people whose earning capacity is substantially reduced because they cannot work full time due to their caring responsibilities. It is means tested to target the support to those most in need.
In the programme for Government, we set out an ambition to significantly increase the income disregards for carer’s allowance with a view to phasing out the means test entirely during the lifetime of this Government. A number of significant changes have been made to the carer’s allowance means test in recent years. From 3 July, there will be further increases that will see the weekly income disregards rise from €450 to €625 for a single person and from €900 to €1,250 for carers with a spouse or partner. This amounts to cumulative increases to the disregards of €292.50 and €585 weekly since June 2022. From July, carers in a two-adult household with an income of approximately €69,000 will still retain their full carer's payment. Even with an income of €97,000, they will retain a partial payment. These increases have made the scheme accessible to many more people and may increase payment rates for those currently on a reduced rate.
It is important that we make progress in a way that is sustainable and that balances the allocation of available budgetary resources. That is why we have committed to a measured and phased approach over a number of budgets. We are beginning our work on budget 2026 in the Department, and this will be a priority I intend to achieve over the lifetime of the Government.
As the Minister stated, more than 100,000 people are in receipt of carer's allowance. There are 500,000 carers, however, which means that 400,000 people are not getting benefits under the scheme. Will the Minister increase the disregard in the forthcoming budget? The means test hits families who are doing their best, often one-parent families or where a parent is working part time and might have some savings. It is outdated and creates huge hardship, especially for women, This is because the majority of carers are women. The current system penalises those who are trying to save for their future or manage their finances responsibly. It penalises prudence. This is not only a financial issue; it is also a matter of fairness and equality.
The Minister mentioned cost concerns previously with estimates ranging from €600 million to €3 billion depending on eligibility. Has the Department done proper costings in the context of abolishing the means test? Will the Minister clarify the figures from which the Department is working? Have any equality or poverty impact assessments been conducted as part of this work to ensure that the most vulnerable are not disproportionately affected?
I reiterate our full support for carers. I fully recognise the gender impact caring has. Deputy Ardagh is right to highlight that.
It is important to look at the progress made on disregards in recent years. I want that to continue and for more people to qualify for the payment. The carer's support grant, which was paid at the beginning of June, is not subject to a means test. It is paid out. We are working through all the issues that were highlighted by the Deputy to get an effective costing for the phasing out of the means test and the other issues she highlighted. We will continue to do that.
In the context of budget 2026, I intend to seek the support of my colleagues to once again substantially increase the income disregards. That will be done in the context of the budgetary negotiations.
As stated, there are other supports for family carers. The carer's support grant was the highest ever. It was paid out on 5 June with an investment of €334 million.
Carers are saving the State billions of euro. The highest figure we have seen for the amount involved is €3 billion. In any event, the savings being made are enormous. People provide care for children with complex needs, older people and family members with serious illnesses. They do so out of love and with very little support from the State.
While the increases to income disregards are welcome, they are not a substitute for fully abolishing the means tests. Carers, as the Minister stated, are the backbone of our society, providing essential care the State would otherwise struggle massively to offer. The financial and emotional toll on individuals is immense and abolishing the means test would go some way to helping those families. Will the Minister provide a detailed plan for how the carer's allowance means test will be abolished? If he would give me a timeline for how it will be implemented over the course of Government's term of office, it would be appreciated.
I assure the Deputy that we are working on the plan and on what will be involved, not only financially but also in other ways, in the context of abolishing the means test, and we will continue to do so.
I also highlight that a great deal of work has been done to support long-term carers. The long-term carer's contribution scheme ensures that people who have been full-time carers for at least 20 years will get contributions to cover the gaps in their records in order to allow them to qualify for the contributory State pension. That is beginning to take effect with carers who would otherwise have lost their contributions and not got any recognition for their work.
We are fully committed to phasing out the means test, but I am conscious that there are other supports and issues we need to improve on. Other Departments also have work to do in supporting carers. This is not just the responsibility of the Department of Social Protection. Other Departments are involved in supporting full-time carers, family carers and those who work in the care industry. Across government, we will be keeping a focus on this.
